Upon approval of an award from the Fund, the Department will enter into a binding contract with the local government.
(2)
The contract for a grant and/or loan shall be in a form provided by the Department and will include but not be limited to:
(a)
A provision that disbursements from the Fund will be according to the terms of the contract;
(b)
The eligible use of funds;
(c)
The performance standards expected of the local government;
(d)
The repayment obligation of the local government for failure to perform the specified project activity.
(e)
Other provisions that the Department considers necessary or appropriate to implement the award.
(3)
In the event of a contract default, any recovered funds will be returned to the Fund and may be awarded to another project.
(4)
A contract for a loan must be authorized by an ordinance, order or resolution adopted by the governing body of the local government in accordance with the local government’s requirements for public notice and authorizing debt.